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ISG Forms Partnership with Re:infer to Help Enterprises Derive Value from Conversational Data

Powered by AI, clients can analyze conversations to improve collaboration, efficiency, agility and customer service

STAMFORD, Conn.–(BUSINESS WIRE)–
ISG Automation, the pure-play intelligent automation business of Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, said today it is partnering with Re:infer, a London-based provider of an AI platform solution that helps clients derive business value from analyzing both external and internal conversations.

Re:infer, founded in 2015 by Ph.D. scientists from the AI research lab at University College London, uses machine learning technology to understand the massive amounts of communications data generated by the typical business each day—data previously lost or ignored due to processing limitations. The Re:infer conversational data intelligence platform helps organizations gain insights from every conversation, bringing teams together and the business closer to its customers.

“Communications mining—that is, analyzing unstructured, text-based messages for insights—is the next frontier in digital transformation,” said Wayne Butterfield, director, ISG Automation. “Our partnership with Re:infer will give our clients a new understanding of what their employees, customers and other constituents are saying, and how to use that insight to make the business more efficient, more agile and more attuned to customer needs and market opportunities.”

Re:infer’s deep learning technology automates the interpretation of conversational data and bridges the gap between humans and information technology systems, and between unstructured and structured data, said Ed Challis, co-founder and CEO of Re:infer.

“Re:infer gives our clients’ infrastructure a new perceptual capability to listen and understand any of their communications in real time and at scale,” Challis said. “Clients can detect and service customer needs they’d otherwise miss—accounting for huge increases in customer satisfaction. By automating conversational data, we drastically improve fulfillment from hours to seconds and massively increase throughput and efficiency—in some settings by over a thousand times.”

The Re:infer conversational data intelligence platform allows users to deploy custom machine-learning models to analyze their communications data, converting each message into structured, machine-readable data in real time. The zero-code platform allows business users to create their own AI models, for greater specificity and flexibility. The platform’s self-learning capability continuously improves model accuracy.

“ISG Automation continues to add value to its portfolio of automation solutions by bringing the best cognitive capabilities to our clients,” said Chip Wagner, CEO of ISG Automation. “Our partnership with Re:infer meets an important need for clients who are looking to automate the interpretation of their unstructured data to inform their automated business processes. Working with Re:infer, our clients will be able to optimize their revenue potential by deriving new insights from customer conversations, while optimizing cost, efficiency and scalability across the enterprise.”

ISG Automation’s alliance with Re:infer is in line with its strategy of partnering with the world’s leading automation software and service providers to bring the benefits of intelligent process automation to clients. ISG Automation clients will have immediate access to the Re:infer platform and ISG Automation will be able to introduce its full range of services to Re:infer clients.

ISG Automation is the pure-play intelligent automation unit of ISG with a full portfolio of services, including automation assessments and strategy, proof-of-concept deployments, implementation and integration of software bots, establishment of centers of excellence to scale automation, as well as training and managed services. For more about ISG Automation, visit this webpage.

About Re:infer

Re:infer is a conversational data intelligence platform built for the enterprise that unlocks the value contained in conversational data for every team in the business to better understand the customer and serve them more efficiently. It allows users to turn any message into structured, actionable data, and build intelligent products, services and workflows to drive scalability and improve the customer experience. For more information, visit reinfer.io.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005190/en/

Will Thoretz, ISG

+1 203 517 3119

[email protected]

Cait Buckley, Matter Communications for ISG

+1 617 874 5214

[email protected]

KEYWORDS: Connecticut Europe United States United Kingdom North America

INDUSTRY KEYWORDS: Electronic Design Automation Professional Services Data Management Technology Software Consulting Internet

MEDIA:

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Vine Energy Inc. Announces First-Quarter 2021 Results and Provides 2021 Guidance

PLANO, Texas–(BUSINESS WIRE)–
Vine Energy Inc. (NYSE: VEI) (“Vine” or the “Company”) today reported first-quarter 2021 results and provided full-year 2021 guidance and select guidance for the second-quarter 2021.

Highlights

• Completed IPO on March 17, 2021, raising net proceeds of approximately $322 million
• Issued $950 million of 8-year, 6.75% senior unsecured notes to retire predecessor company notes; projected to save nearly $20 million per year in cash interest expense
• Closed on a new reserves-based lending facility (“RBL”) with an initial borrowing base of $350 million

The highlights presented below reflect select financial metrics from the unaudited financial statements for the three months ended March 31, 2021 and 2020, and include the results of the predecessor Vine Oil & Gas LP for the entire period and the results of Brix Oil & Gas Holdings LP and Harvest Royalties Holdings LP from March 17, 2021, the effective date of the combination resulting from the corporate reorganization in connection with the initial public offering.

First-Quarter 2021 Select Financial Highlights

		Q1 2021					Q1 2020					Change
($ millions, except per share metrics)
Production (MMcfd)				724					622					102
Revenue, w/derivatives		$		118			$		130			$		(12	)
Operating Income		$		(23	)		$		3			$		(26	)
Operating Cash Flow		$		105			$		100			$		5
Net Income		$		(58	)		$		(27	)		$		(31	)
Net Income attributable to Vine		$		(16	)
Earnings per share		$		(3.95	)

The unaudited financial statements are presented in their entirety in the appendix of this release.

To facilitate a clearer representation of first-quarter 2021 performance, all results presented hereinafter are pro forma for the combination resulting from the corporate reorganization and initial public offering as if the transactions occurred on January 1, 2020.

Financial and Operational Highlights

• Generated $145 million of adjusted EBITDAX and $20 million of Adjusted Free Cash Flow
• Incurred capital of $98 million, or 68% of adjusted EBITDAX
• Announced 2021 capital guidance, which is projected to yield average annual production of approximately 1 Bcf per day (net) while generating substantial Adjusted Free Cash Flow
• Continued to demonstrate progress toward the Company’s objective to reduce methane and greenhouse gas intensity

Reflecting on the quarter, Eric Marsh, Chairman, President and Chief Executive Officer, commented, “Our initial public offering begins a sequel in Vine’s short but exciting history, and it was undoubtedly the most transformational quarter since 2014 when the company was created by the acquisition of our Haynesville asset. Following the combination of three successful companies, Vine today holds a strategic position in the Haynesville Basin and we have the size, scale and balance sheet to generate significant levered free cash flow and return capital to our shareholders, while concurrently upholding our longstanding commitment to safety and environmental stewardship.”

Mr. Marsh continued, “Though there are many new things about us, our core identity hasn’t changed. Most notably, we have about 25 years of high-quality inventory that supports our ability to create free cash flow longevity, and our operating team is one of the most highly skilled, technical collection of professionals in the industry. We harbor the institutional knowledge and technology which allows us to drill some of the most economic natural gas wells in North America. We believe we can eclipse past milestones as we reach new drilling and completion efficiencies, drive down capital intensity and operating expenses, and deliver on our expectations. Along the way, I believe improving natural gas fundamentals will hasten our bid to substantially increase the value of the company while holding production steady.”

First-Quarter 2021 Select Financial Highlights (Pro Forma)

		Q1 2021			Q1 2020			Change
($ millions, except for per unit metrics)
Production (MMcfd)			945			859			86
Average Realized Price, w/realized derivatives ($/Mcf)		$	2.34		$	2.39		$	(0.05	)
Operating Expenses ($/Mcf)		$	0.63		$	0.66		$	(0.03	)
Adjusted EBITDAX		$	145		$	136		$	9
Capital Incurred		$	98		$	99		$	(1	)
Adjusted Free Cash Flow		$	20		$	12		$	8

Production increased 86 MMcfd compared to the prior year quarter due to new wells brought online, improved operational efficiencies and exceptional PDP performance. However, production was negatively impacted by 28 MMcfd averaged over the first quarter due to winter storm Uri in February 2021 that forced temporary well curtailments.

Average realized price, including realized gain/loss on derivatives, was $2.34 per Mcf, $0.05 per Mcf lower compared to the prior year quarter, as follows:

		Q1 2021				Q1 2020				Change
NYMEX settlement price (MMBtu) (1)		$	2.69			$	1.95			$	0.74
Basis differential, including firm sales			(0.13	)			(0.18	)			0.05
Fuel component of gathering			(0.07	)			(0.05	)			(0.02	)
BTU factor			(0.09	)			(0.07	)			(0.02	)
Prior-period adjustments and non-operated sales			(0.04	)			(0.01	)			(0.03	)
Average realized price, excluding derivatives (Mcf)		$	2.36			$	1.64			$	0.72
Realized gain/(loss) on derivatives			(0.02	)			0.75				(0.77	)
Average realized price, including derivatives (Mcf)		$	2.34			$	2.39			($	0.05	)

(1)

Based on posted futures settlement

Total operating expense, excluding DD&A, strategic and exploration expense, and the non-cash gain on the gathering liability, decreased $0.03 per Mcf compared to the prior year quarter. Lease operating expense was impacted by costs related to winter storm Uri and higher produced water volume, while cash gathering expense benefited from a step down in the contractual rate in September 2020. G&A expense was lower by $0.02 due to the June 2020 reduction in force and operating leverage on higher production volume.

per Mcf		Q1 2021			Q1 2020			Change
Lease operating		$	0.22		$	0.20		$	0.02
Gathering & treating, excluding non-cash gain			0.31			0.32			(0.01	)
Prod & ad-valorem taxes			0.06			0.06			0.00
General & administrative			0.05			0.07			(0.02	)
Total (may not foot due to rounding)		$	0.63		$	0.66		$	(0.03	)

Adjusted EBITDAX in the first-quarter 2021 was $145 million compared to $136 million in the prior year quarter, or approximately 73% of revenue, excluding unrealized derivative losses, in both periods. The increase was largely due to higher production volume, partially offset by lower average realized prices. With the sum of capital incurred and cash interest essentially flat year-over-year, Adjusted Free Cash Flow was $20 million compared to $12 million in the prior year quarter.

Refer to “Non-GAAP Financial Measures” in the appendix of this release for a definition of Adjusted EBITDAX and Adjusted Free Cash Flow and related disclaimers.

Operating Results

Development and completion capital incurred in the first-quarter 2021 was $92 million to drill 7 gross (6.2 net) wells and complete 11 gross (10.4) net wells, while other field capital was $6 million related to the buildout of the Company’s water gathering and disposal infrastructure, midstream, leasing and other miscellaneous investments.

Q1 2021		Haynesville				Mid-Bossier				Total
		Gross		Net		Gross		Net		Gross		Net
Wells Drilled		3		2.9		4		3.3		7		6.2
Wells Turned-In-Line (TIL)		9		8.4		2		2.0		11		10.4
Completed Lateral (ft)										87,993		83,010

Guidance: Prioritizing Free Cash Flow Generation and Debt Reduction

Vine’s 2021 guidance was developed to prioritize free cash flow generation and debt reduction. Average annual production is expected to be 10 – 12% higher compared to 2020 as the Company targets a one-time step-up to its optimal, long-term production goal of 1 Bcf per day.

Approximately 60% of expenditures associated with the 2021 capital program are expected to be incurred in the first six months of 2021. The program is expected to target 250,000 to 260,000 net feet of completed lateral while drilling and completion costs are expected in the range of $1,180 to $1,210 per lateral foot.

		2021 (1)		2nd quarter 2021
Average Production		985 – 1,005 MMcfd		1,050 – 1,060 MMcfd
Adjusted Free Cash Flow (2)		$145 – $155 million
Capital Spending (incurred)		$340 – $350 million
Lease operating expense, per Mcf		$0.19 – $0.20
Gathering & treating, per Mcf		$0.29 – $0.30
Production & ad-valorem taxes, per Mcf		$0.06 – $0.07
General & administrative, per Mcf (3)		$0.06 – $0.07
Cash interest (4)		$88 – $90 million		$20 – $22 million
Cash income taxes (5)		$22 – $24 million		$5.0 – $5.5 million

(1)		Includes 1st quarter 2021 pro forma results for combined entity
(2)		Based on NYMEX futures on April 30, 2021; refer to the appendix for Vine’s definition of Adjusted Free Cash Flow
(3)		Excludes non-cash stock compensation
(4)		Excludes call premiums on retirement of Vine Oil & Gas LP unsecured notes
(5)		Includes tax distributions to original owners (financing cash flow)

Financial Position and Liquidity

As of March 31, 2021, total debt outstanding was $1.1 billion, consisting of $28 million outstanding under the 1^st lien RBL, $150 million outstanding under the 2^nd lien term loan, and $910 million of legacy unsecured notes issued by Vine Oil & Gas LP as the predecessor entity. Settlement of the newly issued $950 million, 6.75% 2029 senior unsecured notes did not occur until April 7, 2021. Liquidity was $389 million, in the form of cash on hand and availability under the Company’s $350 million RBL, less a $26 million letter of credit.

As of April 30, 2021, total debt outstanding was $1.2 billion, consisting of $73 million outstanding under the 1^st lien RBL, $150 million outstanding under the 2^nd lien term loan, and $950 million of 6.75% senior unsecured notes due 2029. Liquidity was $334 million.

In early May 2021, liquidity was enhanced by $13 million following the partial release (50%) of an outstanding letter of credit.

Hedging Update

Vine routinely utilizes commodity swaps and options to protect its development program and increase the predictability of future cash flows. As of March 31, 2021, approximately 90% of forecasted average production for April to December 2021 is hedged at a weighted average price of $2.53 per MMBtu.

The Company also engages in firm sales agreements with high-quality counterparties to effectively hedge the price received for natural gas sales at local gathering hubs. Approximately 55% of forecasted average production for April to December 2021 is presold, as follows: 30% at a weighted average price of $0.16 per MMBtu under NYMEX and 25% at $0.01 per MMBtu over Columbia Mainline.

Refer to appendix of this release for a quarterly schedule of the Company’s commodity derivative and firm sales portfolios.

Environmental, Social and Governance

Vine is committed to operating in a manner that protects the welfare of people, the environment, wildlife, and local communities. The Company proudly produces 100% natural gas to meet global demand for cleaner, sustainable, and reliable energy, while concurrently preserving ecosystems for future generations. Since 2017, Vine predecessors have reduced methane intensity by 62% and greenhouse gas intensity by 35%, with plans to realize further reductions. To learn more about Vine’s ESG leadership, visit www.vineenergy.com/commitment.

Conference Call

Date: May 17, 2021

Time: 9am Central time

Securities analysts may access an open line by dialing (844) 912-3900 (domestic U.S.) or (236) 714-3354 (international) using conference ID 5188044.

All others are encouraged to access the live webcast in listen-only mode by navigating to the following link: https://www.vineenergy.com/investors/events-and-presentations/. Note: registration required. Please access the link at least 5 minutes prior to the start of the call.

A replay of the webcast will be archived for one-year at the web address noted above.

About Vine Energy Inc.

Vine Energy Inc. (NYSE: VEI) is an energy company focused exclusively on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shales in the Haynesville Basin of Northwest Louisiana. The company employs a relentless focus on generating free cash flow and shareholder returns while demonstrating environmental, social and governance leadership. For more information, visit our website at www.VineEnergy.com.

Forward-Looking Statements

The information in this Notice includes “forward-looking statements.” All statements, other than statements of historical fact included in this Notice, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Notice, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production and sale of natural gas. These risks include, but are not limited to, commodity price volatility, lack of availability of drilling and production equipment and services, costs for drilling and completion and production services, drilling and other operating risks, environmental risks, regulatory changes, the uncertainty inherent in estimating natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and other risks.

FINANCIAL STATEMENTS OF VINE ENERGY INC.
(U.S. GAAP)
VINE ENERGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share—Unaudited)
		For the Three Months Ended March 31,
		2021				2020
Revenue:
Natural gas sales		$	153,986			$	92,543
Realized (loss) gain on commodity derivatives			(760	)			42,044
Unrealized loss on commodity derivatives			(35,103	)			(4,639	)
Total revenue			118,123				129,948
Operating Expenses:
Lease operating			14,960				12,995
Gathering and treating			20,601				16,382
Production and ad valorem taxes			3,982				4,149
General and administrative			2,583				3,331
Monitoring fee			2,077				1,738
Depletion, depreciation and accretion			97,072				82,324
Exploration			—				75
Strategic			—				562
Write-off of deferred IPO costs			—				5,787
Total operating expenses			141,275				127,343
Operating Income			(23,152	)			2,605
Interest Expense:
Interest			(29,792	)			(29,351	)
Loss on extinguishment of debt			(4,883	)			—
Total interest expense			(34,675	)			(29,351	)
Income before income taxes			(57,827	)			(26,746	)
Income tax provision			(165	)			(150	)
Net Income		$	(57,992	)		$	(26,896	)
Net income attributable to Predecessor			(28,939	)
Net income attributable to noncontrolling interest			(13,144	)
Net income attributable to Vine Energy Inc			(15,909	)
Net income per share attributable to Vine Energy Inc
Basic		$	(3.95	)
Diluted		$	(3.95	)
Weighted average shares outstanding:
Basic			4,032,450
Diluted			4,032,450

 

VINE ENERGY INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands—Unaudited)
		March 31, 2021				December 31, 2020
Assets
Current assets:
Cash and cash equivalents		$	92,528			$	15,517
Accounts receivable			91,161				77,129
Joint interest billing receivables			17,625				18,280
Prepaid and other			1,417				3,626
Total current assets			202,731				114,552
Natural gas properties (successful efforts):
Proved			3,162,572				2,722,419
Unproved			89,993				—
Accumulated depletion			(1,475,582	)			(1,380,065	)
Total natural gas properties, net			1,776,983				1,342,354
Other property and equipment, net			8,828				7,936
Other			12,233				2,921
Total assets		$	2,000,775			$	1,467,763
Liabilities and Stockholders’ Equity / Partners’ Capital
Current liabilities:
Accounts payable		$	7,908			$	20,986
Accrued liabilities			141,468				90,004
Revenue payable			29,121				37,552
Derivatives			78,529				19,948
Total current liabilities			257,026				168,490
Long-term liabilities:
New RBL			28,000				—
Prior RBL			—				183,569
Second lien credit facility			143,664				142,947
Unsecured debt			899,435				898,225
Asset retirement obligations			23,467				21,889
TRA liability			6,985				—
Derivatives			31,447				38,341
Other			—				4,241
Total liabilities			1,390,024				1,457,702
Commitments and contingencies
Stockholders’ Equity / Partners’ Capital
Partners’ capital			—				10,061
Class A common stock, $0.01 par value, 350,000,000 shares authorized, 41,040,721 issued and outstanding at March 31, 2021			410				—
Class B common stock, $0.01 par value, 150,000,000 shares authorized, 34,218,535 issued and outstanding at March 31, 2021			342				—
Additional paid-in capital			348,406				—
Retained earnings			(15,909	)
Total stockholders’ equity attributable to Vine Energy Inc			333,249				10,061
Noncontrolling interest			277,502				—
Total stockholders’ equity / partners’ capital			610,751				10,061
Total liabilities and stockholders’ equity / partners’ capital		$	2,000,775			$	1,467,763

 

VINE ENERGY INC
CONSOLIDATED STATEMENTS OF CASH FLOW
(Amounts in thousands—Unaudited)
		For the Three Months Ended March 31,
		2021				2020
Operating Activities
Net income		$	(57,992	)		$	(26,896	)
Adjustments to reconcile net income to operating cash flow:
Depletion, depreciation and accretion			97,072				82,324
Amortization of financing costs			2,909				4,361
Non-cash loss on extinguishment of debt			4,883				—
Non-cash write-off of deferred IPO costs			—				5,787
Unrealized loss on commodity derivatives			35,103				4,639
Volumetric and production adjustment to gas gathering liability			—				(2,567	)
Other			33				(6	)
Changes in assets and liabilities:
Accounts receivable			11,294				9,549
Joint interest billing receivables			10,084				(5,041	)
Accounts payable and accrued expenses			25,182				34,428
Revenue payable			(21,815	)			(6,967	)
Other			(1,442	)			530
Operating cash flow			105,311				100,141
Investing Activities
Cash received in acquisition of the Brix Companies			19,858				—
Capital expenditures			(78,013	)			(86,005	)
Investing cash flow			(58,155	)			(86,005	)
Financing Activities
Repayment of Brix Credit Facility			(127,500	)			—
Proceeds from New RBL			28,000				45,000
Payments on Prior RBL			(190,000	)			—
Proceeds from issuance of Class A common stock, net of fees			327,422				—
Deferred financing costs			(8,067	)			(3,848	)
Financing cash flow			29,855				41,152
Net increase in cash and cash equivalents			77,011				55,288
Cash and cash equivalents at beginning of period			15,517				18,286
Cash and cash equivalents at end of period		$	92,528			$	73,574

FINANCIAL STATEMENTS OF VINE ENERGY INC.

(Pro Forma)

To facilitate a clearer representation of first-quarter 2021 performance, all schedules presented hereinafter are pro forma for the combination resulting from the corporate reorganization and initial public offering as if the transactions occurred on January 1, 2020.  

VINE ENERGY INC.
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS
		For the Three Months Ended March 31,
		2021				2020
Revenue:
Natural gas sales		$	200,927			$	128,296
Realized gain (loss) on derivatives			(2,348	)			58,305
Unrealized loss on derivatives			(37,949	)			(5,437	)
Total revenue			160,630				181,164
Operating Expenses:
Lease operating			18,693				15,725
Gathering and treating			26,296				22,654
Production and ad valorem taxes			4,757				4,951
General and administrative			3,954				5,453
Depletion, depreciation and accretion			106,505				93,457
Exploration			1				75
Strategic costs			—				717
Write-off of deferred IPO expenses			—				5,787
Total operating expenses			160,206				148,819
Operating Income			424				32,345
Interest expense			(34,249	)			(27,284	)
Income Before Income Taxes			(33,825	)			5,061
Income tax provision			(165	)		$	(150	)
Net Income		$	(33,990	)		$	4,911
Net income attributable to non-controlling interests			(15,390	)			2,303
Net Income Attributable to Vine Energy Inc			(18,600	)			2,608
Net Income per Share:
Basic		$	(0.45	)		$	0.06
Diluted		$	(0.45	)		$	0.06
Weighted Average Shares Outstanding:
Basic			41,040,721				41,040,721
Diluted			41,040,721				41,040,721

VINE ENERGY INC
SELECT PRO FORMA PRODUCTION AND UNIT COSTS STATISTICS
		For the Three Months Ended Mar 31,
		2021			2020
Production data:
Natural gas (MMcf)			85,035			78,207
Average daily production (MMcfd)			945			859
Average sales prices per Mcf:
Before effects of derivatives		$	2.36		$	1.64
After effects of derivatives			2.34			2.39
Costs per Mcf:
Lease operating		$	0.22		$	0.20
Cash gathering and treating			0.31			0.32
Production and ad valorem taxes			0.06			0.06
General and administrative			0.05			0.07
Total cash operating expenses		$	0.63		$	0.66
Exploration			0.00			0.00
Depreciation, depletion and accretion			1.25			1.19
Strategic			—			0.01
Non-cash gain on gathering liability			—			(0.03	)
Non-cash writeoff of deferred IPO costs			—			0.07
Total (may not foot due to rounding)		$	1.88		$	1.90

VINE ENERGY INC.
NATURAL GAS SWAPS
		Natural Gas Swaps		Weighted Avg Swap Price
Period		(MMBtud)		($ / MMBtu)
2021
Second Quarter		832,871		$	2.52
Third Quarter		845,333		$	2.53
Fourth Quarter		848,887		$	2.55
2022
First Quarter		866,797		$	2.56
Second Quarter		348,859		$	2.54
Third Quarter		409,853		$	2.54
Fourth Quarter		604,935		$	2.53
2023
First Quarter		528,652		$	2.48
Second Quarter		65,470		$	2.45
Third Quarter		45,954		$	2.44
Fourth Quarter		125,092		$	2.50
2024
First Quarter		313,512		$	2.53
Second Quarter		11,957		$	2.31
Third Quarter		7,366		$	2.31
Fourth Quarter		70,761		$	2.58
2025
First Quarter		137,667		$	2.58

VINE ENERGY INC. FIRM SALES
Period		Firm Sales: NYMEX Index (MMBtud)		Weighted Avg Price (NYMEX less) ($ / MMBtu)				Firm Sales: ML Index (MMBtud)		Weighted Avg Price (ML plus) ($ / MMBtu)
2021
Second Quarter		405,067		$	(0.163	)		467,171		$	0.012
Third Quarter		310,000		$	(0.163	)		355,202		$	0.013
Fourth Quarter		310,000		$	(0.163	)		138,401		$	0.014
2022
First Quarter		310,000		$	(0.163	)		30,000		$	0.015
Second Quarter		100,000		$	(0.150	)		30,000		$	0.015
Third Quarter		100,000		$	(0.150	)		30,000		$	0.015
Fourth Quarter		33,333		$	(0.150	)		30,000		$	0.015
2023
First Quarter								30,000		$	0.015

FINANCIAL STATEMENTS OF VINE ENERGY INC.

(Reconciliation)

NON-GAAP FINANCIAL MEASURES

We define Adjusted EBITDAX as our net income before interest expense, income taxes, depreciation, depletion and accretion, unrealized gains and losses on commodity derivatives, exploration expense, strategic expense, and other non-cash operating items. We believe Adjusted EBITDAX is a useful performance measure because it allows for an effective valuation of our operating performance when compared against our peers, without regard to our financing methods, corporate form, or capital structure. We exclude the items listed above in arriving at Adjusted EBITDAX to reflect the substantial variance in practice from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of Adjusted EBITDAX may not be identical to other similarly titled measures of other companies.

We define Adjusted Free Cash Flow as Adjusted EBITDAX less the sum of cash interest, capital incurred and tax payments and distributions. We believe Adjusted Free Cash Flow is a useful performance measure as it’s an indicator of the company’s ability to generate cash flow once capital is invested to either maintain or expand production. Adjusted Free Cash Flow should not be considered as an alternative to, or more meaningful than, operating cash flow or investing cash flow determined in accordance with GAAP. Our computation of adjusted free cash flow may not be identical to other similarly titled measures of other companies.

VINE ENERGY INC.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAX AND ADJUSTED FREE CASH FLOW
		Pro Forma Presentation								GAAP Presentation
		For the Three Months Ended Mar 31,								For the Three Months Ended Mar 31,
			2021				2020				2021				2020
		(in thousands)								(in thousands)
Net income/(loss)		$	(33,990	)		$	4,911			$	(57,992	)		$	(26,896	)
Interest expense			34,249				27,284				34,675				29,351
Income tax provision			165				150				165				150
Depletion, depreciation and accretion			106,505				93,457				97,072				82,324
Unrealized (gain)/loss on commodity derivatives			37,949				5,437				35,103				4,639
Exploration			1				75				—				75
Non-cash G&A			—				344				(1	)			(6	)
Strategic			—				717				—				562
Non-cash writeoff of deferred IPO costs			—				5,787				—				5,787
Non-cash volumetric and production adjustment to gas gathering liability			—				(2,567	)			—				(2,567	)
Adjusted EBITDAX		$	144,879			$	135,595			$	109,022			$	93,419
Cash interest			(26,588	)			(24,242	)			(26,770	)			(24,990	)
Capital incurred			(97,828	)			(99,021	)			(81,168	)			(82,290	)
Adjusted Free Cash Flow		$	20,463			$	12,332			$	1,084			$	(13,861	)

 

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Investor Contact Information

David Erdman

Director, Investor Relations

Phone: 469-605-2480

Email: [email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Energy Utilities Oil/Gas

MEDIA:

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Orthofix Announces US and European Full Market Launch of OSCAR PRO System for Removal of Cement During Complex Joint Revision Surgeries

LEWISVILLE, Texas–(BUSINESS WIRE)–Orthofix Medical Inc. (NASDAQ:OFIX), a global medical device company with a spine and orthopedics focus, today announced the U.S. and European full market launch of the OSCAR PRO^™ Ultrasonic Arthroplasty Revision System. Designed to reduce the challenges associated with revising failed cemented arthroplasties, the OSCAR PRO is an ultrasonic surgical system that aids in the removal of cement during complex joint revision surgeries.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210517005198/en/

“The OSCAR PRO system is a fourth generation product from the OSCAR line that has been the gold standard in assisting with complex joint revision surgeries since 1990,” said Orthofix President of Global Orthopedics Paul Gonsalves. “The technology is well accepted and has been used successfully for decades in removing cement total joint arthroplasties and aiding cementless prosthesis removal. We are pleased to continue to bring new innovations to the market to assist surgeons in performing these often challenging procedures.”

This next generation product brings a technology platform to the market that extends functionalities beyond the original OSCAR system. The design includes an enhanced user interface to enable a more efficient surgical experience and new data collection capabilities.

About Joint Revision Surgery

Over time, joint replacements may fail and need surgical revision. Removing the implant can be challenging due to the need to efficiently remove the cement adhering the device to the bone. Traditional techniques for cement removal have included the use of drills, burrs, curettes and osteotomes. Mechanical removal through these methods can be difficult and time-consuming. The OSCAR PRO system uses ultrasonic vibrations to soften the cement holding the implant in place. The system also contains tools that enable the surgeon to remove the softened cement using specially designed probes.

About Orthofix

Orthofix Medical Inc. is a global medical device and biologics company with a spine and orthopedics focus. The Company’s mission is to deliver innovative, quality-driven solutions as we partner with health care professionals to improve patient mobility. Headquartered in Lewisville, Texas, Orthofix’s spine and orthopedic products are distributed in more than 70 countries via the Company’s sales representatives and distributors. For more information, please visit www.Orthofix.com.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, relating to our business and financial outlook, which are based on our current beliefs, assumptions, expectations, estimates, forecasts and projections. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “intends,” “predicts,” “potential,” or “continue” or other comparable terminology. These forward-looking statements are not guarantees of our future performance and involve risks, uncertainties, estimates and assumptions that are difficult to predict, including the risks described in Part I, Item 1A under the heading Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”). In addition to the risks described there, factors that could cause or contribute to such differences may include, but are not limited to; the risk that surgeons may be slow to adopt the OSCAR PRO system; the risk that future patient studies or clinical experience and data may indicate that treatment with the OSCAR PRO system does not improve patient outcomes as much as previously believed, or otherwise call into question the benefits of its use to patients, hospitals and surgeons; the risk that the product may not perform as intended and may therefore not achieve commercial success; the risk that competitors may develop superior products or may have a greater market position enabling more successful commercialization; the risk that insurance payers may decline to reimburse healthcare providers for the use of our products.

This list of risks, uncertainties and other factors is not complete. We discuss some of these matters more fully, as well as certain risk factors that could affect our business, financial condition, results of operations, and prospects, in reports we file from time-to-time with the SEC, which are available to read at www.sec.gov. Any or all forward-looking statements that we make may turn out to be wrong (due to inaccurate assumptions that we make or otherwise), and our actual outcomes and results may differ materially from those expressed in these forward-looking statements. You should not place undue reliance on any of these forward-looking statements. Further, any forward-looking statement speaks only as of the date hereof, unless it is specifically otherwise stated to be made as of a different date. We undertake no obligation to update, and expressly disclaim any duty to update, our forward-looking statements, whether as a result of circumstances or events that arise after the date hereof, new information, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005198/en/

Alexa Huerta

Investor Relations

Tel 214 937 3190

[email protected]

Denise Landry

Media Relations

Tel 214 937 2529

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Surgery Health Medical Devices

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OSCAR PRO™ system for arthroplasty procedures and osteotomies. (Photo: Business Wire)

Hims & Hers Health, Inc. Reports First Quarter 2021 Financial Results

Q1 2021 revenue grows 74% year-over-year to $52.3 million

Q1 2021 gross margin of 77% compared to 69% in Q1 2020

Exceeds Q1 2021 guidance, raises full year 2021 revenue expectations

SAN FRANCISCO–(BUSINESS WIRE)–
Hims & Hers Health, Inc. (“Hims & Hers”, NYSE: HIMS), a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, today reported financial results for the first quarter ending March 31, 2021.

“Building on our momentum from last year, Hims & Hers kicked off 2021 with a very strong first quarter, delivering robust revenue growth of 74%, gross profit growth of 95%, and ending the quarter with 391,000 subscriptions on our platform, up nearly 80% year-over-year,” said Andrew Dudum, CEO and co-founder of Hims & Hers. “We made significant headway on our mission of making the highest quality, personalized healthcare accessible to everyone, and we continued to set ourselves apart in the industry with our unified and fully verticalized front door to care.”

Mr. Dudum continued, “It’s our unique ability to anticipate what’s next, to meet our target consumers where they are, and to deliver a beautiful, digital experience that keeps us at the forefront of the transformation of healthcare.”

Key Business Metrics

(In Thousands, Except AOV)

	Three Months Ended
	March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
AOV	$	74			$	69			$	67			$	58			$	52
Net Orders	687				579				582				572				546

Revenue

(In Thousands, Unaudited)

	Three Months Ended
	March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
Online Revenue	$	50,680			$	40,091			$	38,829			$	33,284			$	28,524
Wholesale Revenue	1,634				1,375				2,495				2,620				1,539
Total revenue	$	52,314			$	41,466			$	41,324			$	35,904			$	30,063
Total revenue year-over-year growth	74		%		67		%		91		%		76		%		91		%

• Revenue was $52.3 million for the first quarter 2021 compared to $30.1 million for the first quarter 2020, an increase of 74% year-over-year.
• Net loss was $(51.4) million for the first quarter 2021 compared to $(6.0) million for the first quarter 2020. The year-over-year increase in net loss was primarily driven by one-time stock-based compensation and transaction bonus expenses related to the merger with Oaktree Acquisition Corp.
• Gross margin was 77% for the first quarter 2021 compared to 69% for the first quarter 2020.
• Adjusted EBITDA was $(8.6) million for the first quarter 2021 compared to $(4.6) million for the first quarter 2020.

A reconciliation of Adjusted EBITDA, a non-GAAP measure, to net loss, its most comparable financial measure under generally accepted accounting principles in the United States (“U.S. GAAP”), has been provided in this press release in the accompanying tables. Additional information about Adjusted EBITDA is also included below under the heading “Non-GAAP Financial Measures”.

Financial Outlook

Hims & Hers provides guidance based on current market conditions and expectations for revenue and Adjusted EBITDA, which is a non-GAAP financial measure.

For the second quarter 2021, we expect:

• Revenue to be in the range of $55 million to $57 million.
• Adjusted EBITDA to be in the range of $(10) million to $(12) million.

For the full year 2021, we expect:

• Revenue to be in the range of $221 million to $227 million.
• Adjusted EBITDA to be in the range of $(35) million to $(45) million.

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Cautionary Note Regarding Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net loss, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net loss. See “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.

Conference Call

Hims & Hers will host a conference call to review the first quarter 2021 results on May 18, 2021, at 2:00 p.m. PT. The conference call can be accessed by dialing (833) 900-2256 for U.S. participants and (236) 714-2727 for international participants, and referencing conference ID #8982901. A live audio webcast will be available online at https://investors.forhims.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at the same link.

About Hims & Hers Health, Inc.

Hims & Hers is a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, enabling them to access high-quality medical care for numerous conditions related to primary care, mental health, sexual health, dermatology, and more. Launched in November 2017, the company also offers thoughtfully created and curated health and wellness products. With products and services available across all 50 states and Washington, D.C., Hims & Hers is able to provide access to quality, convenient and affordable care for all Americans. Hims & Hers was founded by CEO Andrew Dudum, Hilary Coles, Jack Abraham and Joe Spector at venture studio Atomic in San Francisco, California. For more information about Hims & Hers, please visit forhims.com and forhers.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial outlook and guidance, financial and business performance, the underlying assumptions, and statements about events and trends including events and trends that we believe may affect our financial condition, results of operations, short- and long-term business operations and objectives, and financial needs, market acceptance and success of our business model, our ability to expand the scope of our offerings, and our ability to comply with the extensive, complex and evolving regulatory requirements applicable to the healthcare industry. These statements are based on management’s current expectations, but actual results may differ materially due to various factors.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the “Risk Factors” section of our most recently filed Annual Report on Form 10-K for the year ended December 31, 2020, as amended, and our subsequent filings with the Securities and Exchange Commission (the “Commission”).

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in reports we have filed or will file with the Commission, including our annual report on Form 10-K for the year ended December 31, 2020, as amended and our subsequent filings with the Commission. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in such reports, those results or developments may not be indicative of results or developments in subsequent periods.

Key Business Metrics

Average Order Value (“AOV”) is defined as Online Revenue divided by Net Orders (each as defined below).

“Net Orders” are defined as the number of online customer orders minus transactions related to refunds, credits, chargebacks, and other negative adjustments. Net Orders represent transactions made on our platform during a defined period of time and exclude revenue recognition adjustments recorded pursuant to U.S. GAAP.

“Online Revenue” represents the sales of products and services on our platform, net of refunds, credits, chargebacks and includes revenue recognition adjustments recorded pursuant to U.S. GAAP, primarily relating to deferred revenue and returns reserve.

“Wholesale Revenue” represents non-prescription product sales to retailers through wholesale purchasing agreements.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
	March 31, 2021				December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	88,169			$	27,344
Short-term investments	235,097				72,864
Inventory	4,523				3,543
Prepaid expenses and other current assets	12,407				5,404
Deferred transaction costs	—				3,929
Total current assets	340,196				113,084
Restricted cash, noncurrent	856				1,006
Other long-term assets	4,848				4,607
Total assets	$	345,900			$	118,697
Liabilities, mezzanine equity, and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	13,233			$	8,066
Accrued liabilities	5,823				4,984
Deferred revenue	624				1,272
Warrant liabilities	—				906
Total current liabilities	19,680				15,228
Warrant liabilities	33,370				—
Deferred rent, noncurrent	384				381
Total liabilities	53,434				15,609
Commitments and contingencies
Mezzanine equity:
Redeemable convertible preferred stock par value $0.0001, 275,000,000 and 95,997,674 shares authorized and nil and 93,328,118 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively; liquidation preference of nil and $268,452 as of March 31, 2021 and December 31, 2020, respectively	—				249,962
Total mezzanine equity	—				249,962
Stockholders’ equity (deficit):
Common stock – Class A shares, par value $0.0001, 2,750,000,000 and 166,696,759 shares authorized and 182,973,780 and 46,025,754 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively; Class V shares, par value $0.0001, 10,000,000 shares authorized and 8,377,623 shares issued, and outstanding as of March 31, 2021; Class F shares, par value $0.0001, 6,941,352 shares authorized, issued, and outstanding as of December 31, 2020	18				—
Additional paid-in capital	515,216				24,429
Accumulated other comprehensive loss	(72)				(11)
Accumulated deficit	(222,696)				(171,292)
Total stockholders’ equity (deficit)	292,466				(146,874)
Total liabilities, mezzanine equity, and stockholders’ equity (deficit)	$	345,900			$	118,697

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In Thousands, Except Share and Per Share Data, Unaudited)
	Three Months Ended March 31,
	2021			2020
Revenue	$	52,314		$	30,063
Cost of revenue	12,067			9,444
Gross profit	40,247			20,619
Gross margin %	77		%	69		%
Operating expenses:(1)
Marketing	26,958			12,773
Selling, general, and administrative	61,698			14,064
Total operating expenses	88,656			26,837
Loss from operations	(48,409)			(6,218)
Other income (expense):
Interest expense	—			(10)
Other (expense) income, net	(2,905)			230
Loss before provision for income taxes	(51,314)			(5,998)
Provision for income taxes	(90)			(35)
Net loss	(51,404)			(6,033)
Other comprehensive loss	(61)			(42)
Total comprehensive loss	$	(51,465)		$	(6,075)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.34)		$	(0.17)
Weighted average shares outstanding:
Basic and diluted	153,080,538			34,610,061

______________
(1)		Includes stock-based compensation expense as follows (in thousands):

	Three Months Ended March 31,
	2021			2020
Marketing	$	1,846		$	291
Selling, general, and administrative	32,384			1,113
Total stock-based compensation expense	$	34,230		$	1,404

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands, Unaudited)
	Three Months Ended March 31,
	2021				2020
Operating activities
Net loss	$	(51,404)			$	(6,033)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	394				180
Stock-based compensation	34,230				1,404
Change in fair value of warrant liabilities	2,681				(71)
Warrant expense in connection with Merger	154				—
Amortization of debt issuance costs	144				84
Noncash other	452				(16)
Changes in operating assets and liabilities:
Inventory	(980)				(2,000)
Prepaid expenses and other current assets	(7,147)				(471)
Other long-term assets	(58)				733
Accounts payable	5,117				674
Accrued liabilities	1,114				199
Deferred revenue	(648)				126
Deferred rent	3				—
Net cash used in operating activities	(15,948)				(5,191)
Investing activities
Purchases of investments	(172,021)				(17,642)
Maturities of investments	9,500				19,200
Proceeds from sales of investments	—				6,400
Investment in website development and internal-use software	(740)				(452)
Purchases of property, equipment, and intangible assets	(63)				(273)
Net cash (used in)/provided by investing activities	(163,324)				7,233
Financing activities
Proceeds from issuance of redeemable convertible preferred stock	—				31,600
Payments for issuance costs of convertible preferred stock	—				(89)
Pre-closing stock repurchase	(22,027)				—
Proceeds from issuance of common stock upon Merger	197,686				—
Proceeds from PIPE	75,000				—
Payments for transaction costs	(12,794)				—
Repayment of promissory notes associated with vested and unvested shares	1,193				—
Proceeds from exercise of Class A common stock warrants	807				—
Proceeds from exercise of vested and unvested stock options, net of repurchases	80				(18)
Repayments of principal on term loan	—				(1,158)
Net cash provided by financing activities	239,945				30,335
Foreign currency effect on cash and cash equivalents	2				(9)
Increase in cash, cash equivalents, and restricted cash	60,675				32,368
Cash, cash equivalents, and restricted cash at beginning of the year	28,350				22,797
Cash, cash equivalents, and restricted cash at end of the three-month period	$	89,025			$	55,165
Supplemental disclosures of cash flow information
Cash paid for taxes	$	59			$	69
Cash paid for interest	$	—			$	8
Noncash investing and financing activities
Recapitalization of redeemable convertible preferred stock from pre-closing stock repurchase	$	125			$	—
Conversion of redeemable convertible preferred stock to common stock	$	249,837			$	—
Assumption of Merger warrants liability	$	51,814			$	—
Exercise of Private Placement Warrants and Public Warrants	$	20,871			$	—
Reclassification of deferred transaction costs	$	3,929			$	—
Conversion of Series D preferred stock warrants to Class A common warrants	$	1,160			$	—
Change in transaction costs payable	$	511			$	—
Vesting of early exercised stock options	$	54			$	11
Expiration of Class A common stock redemption right	$	—			$	4,500

Non-GAAP Financial Measures:

In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA, a non-GAAP financial measure. We use Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA, when taken together with the corresponding U.S. GAAP financial measure, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that the use of Adjusted EBITDA is helpful to our investors as it is a metric used by management in assessing the health of our business and our operating performance.

However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided below for Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with U.S. GAAP. Investors are encouraged to review net loss and the reconciliation of Adjusted EBITDA to net loss, and not to rely on any single financial measure to evaluate our business.

Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. “Adjusted EBITDA” is defined as net loss before depreciation and amortization, provision for income taxes, interest income, interest expense, amortization of debt issuance costs, stock-based compensation, change in fair value of warrant liability, and one-time Merger bonuses and warrant expense.

Net Loss to Adjusted EBITDA Reconciliation
(In Thousands, Unaudited)
	Three Months Ended March 31,
	2021			2020
Net loss	$	(51,404)		$	(6,033)
Depreciation and amortization	394			180
Provision for income taxes	90			35
Interest income	(82)			(242)
Interest expense	—			10
Amortization of debt issuance costs	144			84
Stock-based compensation	34,230			1,404
Change in fair value of warrant liability	2,681			(71)
Merger bonuses	5,219			—
Warrant expense in connection with Merger	154			—
Adjusted EBITDA	$	(8,574)		$	(4,633)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005234/en/

Investor Relations

Bob East or Jordan Kohnstam

Westwicke, an ICR company

[email protected]

Media Relations

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: General Health Alternative Medicine Other Health Health Pharmaceutical

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Wabtec’s All-Battery Locomotive, FLXdrive, Lowers Freight Train’s Fuel Consumption by More Than 11 Percent in California Pilot

• FLXdrive is the world’s first 100% battery-powered, heavy-haul freight locomotive
• On a mission to net-zero emissions, the FLXdrive battery locomotive uses 18,000 batteries to cut the world’s carbon footprint

PITTSBURGH–(BUSINESS WIRE)–
Wabtec Corporation (NYSE: WAB) announced today a rail industry first as its FLXdrive battery-electric locomotive delivered more than an 11-percent average reduction in fuel consumption and greenhouse gas emissions for an entire train. It is the equivalent of over 6,200 gallons of diesel fuel saved and approximately 69 tons of CO₂ emissions reduced.

These outcomes are the result of a three-month pilot with BNSF Railway, the largest railroad in the U.S., where the FLXdrive, the world’s first 100-percent battery locomotive, was put to the test in revenue service across more than 13,320 miles of hilly terrain in San Joaquin Valley, California – a territory surrounded by mountains. The region is classified as a non-attainment area, where the air quality is worse than the National Ambient Air Quality Standards.

“The FLXdrive battery-electric locomotive is a defining moment for freight rail and will accelerate the industry toward low- to zero-emission locomotives,” said Eric Gebhardt, Wabtec Chief Technology Officer. “It builds upon the rail industry’s position as the most efficient and sustainable mode of transportation. Building on our long history of pioneering train energy management technologies, this demonstration of coupling 2.4 megawatt hours of battery storage into the mix fully validated our assumptions for the potential for this next generation technology to further drive efficiencies and greenhouse gas reductions. At more than 6 megawatt hours, Wabtec’s next version of FLXdrive technology will have an opportunity to reduce fuel consumption and emissions by up to 30 percent – putting the industry on the cusp of a once-in-a-generation improvement in energy savings and emission reductions.”

The California pilot program was part of a $22.6 million grant from the California Air Resource Board awarded to Wabtec, BNSF and the San Joaquin Valley Air Pollution Control District. The 430,000-pound FLXdrive in the pilot boasts 18,000 lithium-ion battery cells. The battery locomotive charged at the rail yard and recharged during the trip through regenerative braking. The FLXdrive manages the overall train energy flow and distribution through its Trip Optimizer system, an intelligent cruise control system programmed through artificial intelligence to respond to every twist and grade of the track in the most energy-efficient way possible.

Wabtec’s next step is to build a second-generation locomotive with a battery capacity of more than 6 megawatt hours – a level of energy that can reduce a locomotive consist’s fuel consumption and carbon emissions by up to 30 percent, even while hauling several thousand tons of freight in a mile-long train. A fleet of second-generation FLXdrives will be commercialized and could enter supply chain routes in the next few years.

Wabtec’s goal is to develop the next generation of zero-emission locomotives. The company has a clear path to power new locomotives – and repower existing locomotives – with batteries, hydrogen internal combustion engines, and hydrogen fuel cells. It is part of Wabtec’s vision for the rail industry to play a key role in building a clean energy economy and reduce carbon emissions globally by up to 300 tons per year.

About Wabtec Corporation

Wabtec Corporation is a leading global provider of equipment, systems, digital solutions and value-added services for freight and transit rail. Drawing on nearly four centuries of collective experience across Wabtec, GE Transportation and Faiveley Transport, the company has unmatched digital expertise, technological innovation, and world-class manufacturing and services, enabling the digital-rail-and-transit ecosystems. Wabtec is focused on performance that drives progress, creating transportation solutions that move and improve the world. The freight portfolio features a comprehensive line of locomotives, software applications and a broad selection of mission-critical controls systems, including Positive Train Control (PTC). The transit portfolio provides highly engineered systems and services to virtually every major rail transit system around the world, supplying an integrated series of components for buses and all train-related market segments that deliver safety, efficiency and passenger comfort. Along with its industry-leading portfolio of products and solutions for the rail and transit industries, Wabtec is a leader in mining, marine, and industrial solutions. Based in Pittsburgh. Visit: www.WabtecCorp.com

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Media Contacts:

Tim Bader

682-319-7925

[email protected]

KEYWORDS: United States North America California Pennsylvania

INDUSTRY KEYWORDS: Other Transport Environment Technology Rail Transport Alternative Energy Software Energy Logistics/Supply Chain Management

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